Musk and the Millers Got Cozy Outside the White House
During happier times at the White House, Elon Musk was known to spend large amounts of time with Stephen Miller and his wife, Katie, even outside of work.
Katie Miller, an aide in the Department of Government Efficiency, was with Musk 'almost all the time' while he was at the White House, before opting to follow him out the door last month, The Wall Street Journal reports.
Her departure is thought to have caused friction among White House officials. Miller was reportedly on Musk's payroll the entire time, even when her official role was as a special government employee, according to Politico's Playbook.
'And, like … who was she looking out for?' one unnamed administration official said.
The idea that Stephen Miller, the White House deputy chief of staff, was a close companion of Musk now seems far-fetched. The two have since had a public falling-out after Musk condemned President Donald Trump's One Big Beautiful Bill Act as a 'pork-filled' spending bill and a 'disgusting abomination.'
Miller, one of Trump's most loyal allies, fired back with a thinly veiled attack on Musk on X on Thursday, writing: 'The only 'new' spending in the bill is to defend the homeland and deport the illegals—paid for by raising visa fees. All the other provisions? Massive spending cuts. There is no 'pork' in the bill. Just campaign promises.'
Musk unfollowed Stephen Miller on social media around the same time his attacked him online.
The Journal highlighted the fallout between Musk and Miller as yet another example of Musk burning bridges and irritating allies during his stint in the White House.
Of course, there was an even more explosive falling-out between Musk and another former close ally on Thursday.
The simmering tensions between Musk and President Donald Trump reached boiling point with an extraordinary back-and-forth playing out on social media.
Trump lashed out at Musk for opposing his One Big Beautiful Bill Act and accused him of going 'crazy' over his plans to eliminate the electric vehicle (EV) mandate implemented under the Biden administration.
Trump also suggested that the quickest way to save billions in federal spending would be to terminate the government subsidies and contracts awarded to Musk's tech companies. Earlier in the day, Trump told reporters during an Oval Office meeting with German Chancellor Friedrich Merz that he believes Musk has 'TDS [Trump Derangement Syndrome].'
Responding with a furious post, Musk claimed on X: 'Without me, Trump would have lost the election,' and reposted in agreement a call for the president to be impeached and replaced with JD Vance. He also warned that Trump's import tariffs would trigger a recession later this year.
Musk then dropped a 'really big bomb' in the spiralling feud.
'Trump is in the Epstein files. That is the real reason they have not been made public,' Musk wrote.
It is well known that Trump and billionaire child sex offender Jeffrey Epstein, who died by suicide in 2019, were at least acquaintances. Epstein partied with Trump at his Mar-a-Lago resort in the 1990s, and Trump flew on Epstein's private jet multiple times during that period.
The two reportedly fell out around 2004 over a property dispute in Palm Beach, Florida. There is no evidence Trump was connected to or aware of Epstein's crimes.
In a statement regarding the public falling-out, White House press secretary Karoline Leavitt said: 'This is an unfortunate episode from Elon, who is unhappy with the One Big Beautiful Bill because it does not include the policies he wanted.'
'The president is focused on passing this historic piece of legislation and making our country great again.'
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11 minutes ago
Trump's tariffs could pay for his tax cuts -- but it likely wouldn't be much of a bargain
WASHINGTON -- WASHINGTON (AP) — The tax cuts in President Donald Trump's One Big Beautiful Bill Act would likely gouge a hole in the federal budget. The president has a patch handy, though: his sweeping import taxes — tariffs. The Congressional Budget Office, the government's nonpartisan arbiter of tax and spending matters, says the One Big Beautiful Bill, passed by the House last month and now under consideration in the Senate, would increase federal budget deficits by $2.4 trillion over the next decade. That is because its tax cuts would drain the government's coffers faster than its spending cuts would save money. By bringing in revenue for the Treasury, on the other hand, the tariffs that Trump announced through May 13 — including his so-called reciprocal levies of up to 50% on countries with which the United States has a trade deficit — would offset the budget impact of the tax-cut bill and reduce deficits over the next decade by $2.5 trillion. So it's basically a wash. That's the budget math anyway. The real answer is more complicated. Actually using tariffs to finance a big chunk of the federal government would be a painful and perilous undertaking, budget wonks say. 'It's a very dangerous way to try to raise revenue,' said Kent Smetters of the University of Pennsylvania's Penn Wharton Budget Model, who served in President George W. Bush's Treasury Department. Trump has long advocated tariffs as an economic elixir. He says they can protect American industries, bring factories back to the United States, give him leverage to win concessions over foreign governments — and raise a lot of money. He's even suggested that they could replace the federal income tax, which now brings in about half of federal revenue. 'It's possible we'll do a complete tax cut,'' he told reporters in April. 'I think the tariffs will be enough to cut all of the income tax.'' 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A federal court in New York has already struck down the centerpiece of his tariff program — the reciprocal and other levies he announced on what he called 'Liberation Day'' April 2 — saying he'd overstepped his authority. An appeals court has allowed the government to keep collecting the levies while the legal challenge winds its way through the court system. Economists also say that tariffs damage the economy. They are a tax on foreign products, paid by importers in the United States and usually passed along to their customers via higher prices. They raise costs for U.S. manufacturers that rely on imported raw materials, components and equipment, making them less competitive than foreign rivals that don't have to pay Trump's tariffs. Tariffs also invite retaliatory taxes on U.S. exports by foreign countries. Indeed, the European Union this week threatened 'countermeasures'' against Trump's unexpected move to raise his tariff on foreign steel and aluminum to 50%. 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Tariffs also hit the poor hardest. They end up being a tax on consumers, and the poor spend more of their income than wealthier people do. Even without the tariffs, the One Big Beautiful Bill slams the poorest because it makes deep cuts to federal food programs and to Medicaid, which provides health care to low-income Americans. After the bill's tax and spending cuts, an analysis by the Penn Wharton Budget Model found, the poorest fifth of American households earning less than $17,000 a year would see their incomes drop by $820 next year. The richest 0.1% earning more than $4.3 million a year would come out ahead by $390,070 in 2026. 'If you layer a regressive tax increase like tariffs on top of that, you make a lot of low- and middle-income households substantially worse off,'' said the Tax Foundation's York. Overall, she said, tariffs are 'a very unreliable source of revenue for the legal reasons, the political reasons as well as the economic reasons. They're a very, very inefficient way to raise revenue. If you raise a dollar of a revenue with tariffs, that's going to cause a lot more economic harm than raising revenue any other way.''


Politico
15 minutes ago
- Politico
‘He's gone so nuclear': Vance isn't sure Musk could rejoin the MAGA fold
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CNBC
17 minutes ago
- CNBC
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Then after the bell, the cybersecurity delivered a mostly solid quarter . The stock lost 5.8% on Wednesday. Good old profit-taking after a big run to all-time highs contributed to the selling, and so did concerns about mixed guidance and some noise around federal government inquiries into the company — though nothing has changed in our stance toward last July's massive IT outage and its dealings with software reseller Carahsoft. The outage was caused by a botched CrowdStrike software update. CEO George Kurtz appeared on "Mad Money" with Jim and defended his company in the probes , saying the company is cooperating with investigators. On earnings night, we raised our price target to $500 per share from $400 but kept our hold-equivalent 2 rating in recognition of this year's more than 35% gain in the stock. Shares were modestly higher on Thursday and Friday. AVGO YTD mountain Broadcom YTD Broadcom shares closed at a record high of $261 each Wednesday. Then, after Thursday's close, Broadcom delivered a strong quarter and upbeat comments about its key artificial intelligence business. There are no signs that demand for the company's custom AI chips, or "accelerators," and networking solutions will let up anytime soon. On the software side, Broadcom continues to make the most of its blockbuster VMware acquisition. But again, profit-takers swooped in during Friday's session and pushed the stock down 5%. On earnings night, we raised our price target on the stock to $290 per share from $230 but kept our 2 rating. During Friday's Morning Meeting, Jim did tell investors without a position in Broadcom that it would be a good time to buy, starting with a partial position then building it up over time. (Jim Cramer's Charitable Trust is long CRWD, AVGO. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.